The Effect of Job Crafting and Career Adaptability on Job Performance Mediated by Psychological Availability in Bank Papua

Yulianus Adi Pala'langan¹, Aryana Satrya²

Faculty of Economics and Business, University of Indonesia, Indonesia

Email: [email protected], [email protected]

Keywords

ABSTRACT

Job Crafting, Career Adaptability, Job Performance, Psychological Availability

· Job performance is the highlight and benchmark for every organisation. It is directly related to the organisation, thus generating value and contributing to the organisation's goals, which are demonstrated in the organisation's financial and non-financial results. Optimal individual job performance will lead to business success and affect organisational profitability. This study aims to examine the effect of job crafting and career adaptability on job performance and the indirect effect through the mediation of psychological availability. Empirical data were collected from 220 Bank Papua employees using an online survey method. This study was analysed using Structural Equation Modeling (SEM) and confirmatory factor analysis to test the proposed hypotheses. Lisrel software was used to analyse and test the seven hypotheses created based on the research model. The results showed that career adaptability has a positive effect on job performance both directly and through the mediation of psychological availability. However, job crafting was found to have a negative effect on job performance. Furthermore, this research is expected to contribute to human resource literature, especially for policy makers and related parties to pay attention to aspects of career adaptability, which play a role in the process of shaping employee performance.

INTRODUCTION

Currently, the global economic situation is uncertain and full of challenges such as pandemics, geopolitical situations, shadows and potential recessions, technological disruption, and climate change issues. Based on the World Uncertainty Index (2023), these conditions peaked in the first quarter of 2020, simultaneously with the emergence of the Covid-19 pandemic. After that, the WUI index declined until the first quarter of 2021, but the trend rose again until the fourth quarter of 2022. This has affected the condition of the Indonesian economy, particularly the banking sector, which has resulted in many changes in terms of the financial services landscape. Banks are required to be able to withstand the pressure of uncertain and challenging situations, and be able to adapt in the midst of intense competition in the financial sector.

Intense competition in the banking sector demands an increase in the amount of employee work productivity and remains motivated through performance appraisals. Therefore, it is required to be able to adapt to situations and challenges in order to survive in the midst of market competition. The indicator used to measure the extent of the level of success achieved by the bank in its operational activities is the overall banking performance. It takes various elements to support and complement the various phases and synergies in the banking business. One of them is the focus on human resources that play an important role in achieving organisational goals.

Based on low No. 10 of 1998, bank is a business entity that collects funds from the public in the form of deposits and distributes them to the public in the form of credit and or other forms in order to improve the lives of many people. Regional Development Banks have proven to be resilient in facing all challenges. However, future challenges will be more difficult as global uncertainties affect the world economy such as capital and business scale; governance, risk management and prudential principles; human resources, information technology and infrastructure; digital economy and services; and the role of banking in the economy. Bank Papua is one of the regional-owned enterprises classified into the type of bank based on ownership or government-owned bank, because it is owned and managed by the local government of Papua and West Papua provinces. In the 2022 financial performance report, Bank Papua managed to increase assets by 14% and increase comprehensive income from 407 billion to 489 billion. In terms of profitability and efficiency the bank is also still quite good. ROA in 2022 was recorded at 1.77%, ROE 10.66%, NIM 6.27% and BOPO 83.45%. While the non-performing loan ratio (NPL) is still below the threshold set by the regulator, the gross NPL in 2022 was recorded at 2.92% or a decrease of 0.49 per cent.

Organisational goals cannot be achieved without the active role of employees, even though the company may do so with the sophisticated tools at its disposal. In general, unit leaders of an organisation or company at various levels have full responsibility for all the performance of their unit. Often the most important performance measures are provided by leaders or supervisors who evaluate the performance of their subordinates. Research (Alshaikhmubarak et al., 2020), shows that high-performance human resource practices lead to higher individual performance. Efficiency and effectiveness in employee performance leads to overall banking growth (Ahmad et al., 2015). In the study, they highlighted the contribution of factors that influence job performance, specifically highlighting capacity building as the development of employee skills contributes to improving productivity.

Job performance refers to the actions that individuals perform on the job that contribute to organisational goals. Without job performance, there can be no team performance, unit performance, organisational performance, or even economic sector performance (Dishop & Good, 2022). Job performance is also directly related to organisational performance which is shown in the organisation's financial or non-financial results (Coffie et al., 2023). In an era of rapid change and uncertainty in the workplace, organisations rely heavily on employee expertise and initiative for organisational growth innovation. In this regard, employees being proactive in their work becomes critical to the success and survival of the organisation. In the past, the job assigned to an individual was seen as static and employees were required to follow job descriptions designed by managers. This was because top-down job descriptions were not agile enough to cope with unique and changing working conditions. Instead, today's organisations expect employees to be proactive and even go beyond the job targets asked for in their job descriptions (Lee & Lee, 2018). Organisations are looking for ways to compete, adapt and innovate for effectiveness and long-term survival in their markets. At the same time, there is an increase in employee workload and pressure to work more efficiently (Demerouti et al., 2021).

As such, organisations need proactive and engaged employees who are able to create and sustain a healthy and motivating work environment. Job crafting arises due to self-initiated and worker-initiated changes with the aim of increasing available resources and reducing work demands. In this process, workers are able to be creative and innovate at work, which will affect their performance. When employees have resources such as social support, learning and development opportunities, employees tend to perform better and take on extra roles and responsibilities for their organisation. Moreover, when employees make their work more challenging by learning new skills and involving themselves in new projects, this proactive behaviour positively affects their performance (Lee & Lee, 2018). Most empirical studies found that job crafting has a positive relationship with job performance (Ferreira & Valentini, 2015; Makikangas & Schaufeli, 2021; Kooij et al., 2017; Tims & Derks, 2014). Based on the Job Demands Resources (JD-R) theory, the job crafting scale (JCS) consists of four dimensions: increasing structural job resources, increasing social job resources, increasing challenging job demands, and decreasing hindering job demands. Using the JCS, previous studies have shown that the correlation coefficient between the dimensions of the JCS and job performance is positive.

The rapid of socio-economic and technological changes mean that individuals must have the ability to adapt to these changes. In response to these changing conditions, career construction theory attempts to explain how individuals continuously adapt to the work environment to achieve subjective and objective goals of work, and career success. The ability of individuals to cope with current and anticipated career changes and challenges has received much research attention over the past few years and is called career adaptability. Individual resources can be enhanced through training and development in career adaptability. Employees with higher career adaptability have more resources, and can devote more energy to effective performance. One of the factors that support a person to be proactive is psychological availability. The resources owned by an individual affect the individual's psychological availability. People who have more physical, emotional and psychological resources tend to have the energy to be more involved in their work. When individuals with higher levels of psychological availability are more engaged in their work, they tend to have higher levels of performance and other career outcomes (Jannesari & Sullivan, 2019).

Although previous studies have found a positive relationship between job crafting and job performance, unexpectedly there are some studies that show that job crafting is not significantly related to job performance. The difference in results from various studies on the relationship between job crafting and job performance is found due to the various conceptualisations and measurements of job crafting used (Lee & Lee, 2018). The existence of different views on the effect of job crafting on job performance needs to be investigated further. Furthermore, this study was conducted to analyse the effect of career adaptability on job performance, because however, there are only three studies that have examined the relationship between career adaptability and job performance (Jannesari & Sullivan, 2019).

Based on the conditions presented above, the problems to be analyzed in this study can be formulated as follows: (1) Does job crafting affect on job performance? (2) Does career adaptability affect on job performance? (3) Does phsycological availability have mediating effect between job crafting and career adaptability and job performance?

Based on the background and problem formulation above, the purpose of this study is to analyse the effect of job crafting and career adaptability on job performance mediated by psychological availability on job performance in bank papua.

METHODS

This study used primary data types as analysis material. Data collection was collected by questionnaires distributed online. The criteria for respondents in this study are employees who work Bank Papua at least 3 years .There were 220 respondents involved in this study.

Job crafting are measured by adapting a measuring instrument developed by Karatepe & Terry, (2023), consisting of three dimensions and fifteen indicators. Career adaptability measurement is carried out using a measuring instrument developed by Savickas & Maggiori, (2017), which consists of four dimensions and seven indicators. Psychological Availability measuring instrument adapted from Douglas et al., (2004) contains five indicators. While Job Performance is measured using measurements developed by (Guimaraes et al., 2020) consisting of ten indicators. All questionnaires were measured using a Likert scale of 1-7 (scale 1: strongly disagree, 2: disagree, 3: somewhat disagree, 4: neutral, 5: somewhat agree, 6: agree, 7: strongly agree). The results of the data collection were then analyzed using structural equation modeling (SEM) in the LISREL For Windows Version 8.8 application.

RESULTS

Demographic Profile of Respondents

Descriptive analysis of this study is shown in table 1. The results showed that 50.91% of the respondents were male and 49.09% were female. The majority of respondents were in the age group of 31-40 years (65.45%), marital status was married (63.18%), the last education was Bachelor's degree (82.27%), length of work was 6-10 years, and the position was assistant (56.36%).

Table 1. Demographic Profile of Respondents

Measurement Test Analysis

The initial stage in conducting Structural Equation Modeling (SEM) is to analyze the measurement model. In this analysis, each indicator and variable will be tested for validity and reliability. Validity testing is done by looking at the value of Standardized Factor Loading (SFL) each indicator. The standard of an indicator is said to be qualified in measuring a variable if the SLF value is ≥0.5. Meanwhile, to determine the consistency of the measuring instrument used, it is necessary to know the reliability of the measuring instrument. Reliability in the analysis of a measurement model is seen from Construct Reliability (CR), with the value declared consistent if the CR value≥0.7. There is one more parameter that dapat used i.e. Average Variance Extracted (AVE) value which shows discriminant validity. The AVE criteria are met if the AVE value is ≥0.5 (Hair et al., 2019).

Tabel 2. Measurement Test Results

The results of data processing analysis show that the indicators forming Job Crafting (JC), Career Adaptability (CA), Psychological Availability (PA), and Job Performance (JP) variables show good validity, namely the Standardised Loading Factor (SLF) value is greater than 0.50. While, Construct Reliability (CR) value is> 0.70 and the Average Variance Extracted (AVE) value is >0.50. This shows that each indicator forming the JC, CA, PA, and JP variables has good reliability. As for the AVE value in the variables of job crafting, career adaptability, psychological availability and job performance showed values that fulfil the criteria. So it can be continued to the next stage of testing.

Testing hypotheses

Furthermore, hypothesis testing is carried out through a path diagram that describes the relationship between latent variables by providing SLF values and t-values to test the hypothesis that has been determined. The criteria used by t-values in this study indicate a significant value if the value is ≥ 1.96 at the 5% significance level (Hair et al., 2019)

Table 3. Hypothesis Test Result

Based on the results of hypothesis testing, first hypothesis, job crafting has a significant and negative effect on job performance. So the first hypothesis is rejected. The second hypothesis is accepted, career adaptability is proven to have a positive and significant effect on job performance. For the third hypothesis, it was found that job crafting has a negative effect on psychological availability, so this hypothesis is rejected. Then, fourth hypothesis is proven that career adaptability has a positive and significant effect on psychological availability. This hypothesis is accepted. And the fifth hypothesis is also accepted, where psychological availability has a positive and signicant effect on job performance.

Table 4. Total Effect Calculation

Furthermore, testing the mediating effect of psychological availability on the effect of job crafting and career adaptability on job performance. (Hair et al., 2019) revealed that if the total effect is greater than the direct effect, it means that the mediating variable has an influence in mediating the relationship between the two constructs. In table 4, the total effect on the relationship between job crafting and job performance is 0.054, smaller than the direct effect of 0.06 so that psychological availability does not have a mediating effect. While the total effect on the relationship between career adaptability and job performance of 0.771 is greater than the direct effect of the two constructs, which is 0.33, so it can be said that psychological availability has a mediating effect.

Tabel 5. Sobel Test

In addition, to test the significance of mediation, the sobel test was conducted. The absolute Z value at a significance level of 0.05 is greater than 1.96 (Hair et al., 2019). The test results of the Z value in the relationship between job crafting and job performance are -0.14, smaller than 1.96, so it can be concluded that psychological availability does not significantly affect the relationship between the two variables. Meanwhile, the Z value obtained in the relationship between career adaptability and performance is 4.91, greater than 1.96, and it can be concluded that psychological availability has a significant effect on the relationship between the two variables.

Discussion

Based on the results of the analysis conducted, it was found that job crafting proved to have a negative and significant effect on job performance with employee in Bank Papua. Some studies unexpectedly show that job crafting is not significantly related to job performance (Cenciotti et al., 2016; Kooij et al., 2017). Increasing structural job crafting resources, increasing social job crafting resources, and decreasing inhibiting job crafting resources are not related to job performance. Perhaps helping others can also be seen as a challenge. However, at the same time that employees seek more challenges, they also exhibit more counterproductive behaviours such as gossiping about others and hiding mistakes (Demerouti et al., 2015) According to Zito et al., (2019) , job crafting can cause conflict and increase interference between work and family as an unintended effect, for example by doing work at home, and extending working hours at home. In general, job crafting creates favourable working conditions and results in better performance, but when it is done poorly, employees may do less work or pursue their personal interests without considering organisational goals (Lee & Lee, 2018). Many things hinder the creation of job crafting, both from the individual himself, the influence of the work environment including colleagues and superiors, as well as the lack of attention and support from the company. This finding shows that Bank Papua employees only focus on work results and targets, so they do not make job crafting a reference. In addition, employees are accustomed to a top-down work culture, so work is only considered a daily routine. Referring to the Job Demands Reources theory (Bakker et al., 2014) that individuals can increase the level of challenging job demands to stimulate employees to develop their knowledge and skills or to achieve more difficult goals. A less stimulating job can lead to boredom which in turn can lead to job dissatisfaction. In carrying out their duties and work, Bank Papua employees are less proactive, so making their work less challenging.

Then, the relationship between career adaptability and job performance is positive and significant. Research of Jannesari & Sullivan, (2019) shows that career adaptability is consistently related to job performance. Then, Ohme & Zacher, (2015) found that career adaptability is positively related to performance. These findings suggest that career adaptability is very important in supporting work. Bank Papua employees have a higher level of adaptability, so they can expend more energy to achieve their goals. Thus, career adaptability has a role in terms of improving job performance, which means that the more job performance increases, the higher career adaptability will be.

The relationship between job crafting and psychological availability is negative (-0.09. This is different with the research of Singh & Singh, (2018), which shows that job crafting has a positive influence on psychological availability. According to them, individuals tend to invest in resources which further results in the accumulation of resources, thus forming a pool of resources. Therefore, initiatives to increase resources through job crafting will result in an increase in psychological conditions or resources such as psychological availability. Results of this study shows that implementation of job crafting at Bank Papua has not been fully carried out by employees. Bank Papua employees do not make their work more challenging so they do not have the ability to display appropriate emotions at work.

The results of further analysis show that the relationship between career adaptability and psychological availability is significantly positive. This is supported by Jannesari & Sullivan's (2019) research, which states that those with high psychological availability are ready to fully engage in their work roles without being distracted. So individuals with higher levels of psychological availability are more engaged in their work and tend to have higher levels of performance. This study found that the most influential dimension of career adaptability is caring. Bank Papua employees are concerned about their future so they constantly think about and prepare for the future, and are aware of their education and career choices, which in turn makes them always think positively which helps them think more clearly to increase focus at work.

And finally, the relationship between psychological availability and job performance is positive significantly. This is supported by research of Singh & Singh, 2018 and Jannesari & Sullivan, (2019). They found that individuals with higher levels of psychological availability, will be fully engaged in their work, so tend to have higher levels of performance. This research shows that Bank Papua employees with high psychological availability are able to think clearly at work. Thus, employees will take advantage of opportunities that can improve work outcomes in the workplace.

CONCLUSION

Based on the results of this study, it can be concluded that job crafting has a negative effect on performance. Job crafting can create unfavorable working conditions and result in underperformance, when it is done poorly, employees do less work or pursue their personal interests without considering organizational goals. On the other hand, career adaptability has a positive effect on job performance, and psychological availability mediates the relationship between career adaptability and job performance. Implementation of career adaptability by employees is very important in supporting work. Employees must be prepared and sensitive to changes in work and working conditions, and have the readiness for the professional competencies needed by companies in a highly competitive business life. Individuals who want to develop career adaptability should start by ensuring that they have clarity about what they want to achieve in their career. Adaptability resources accumulate over time as individuals gain education, training and experience. When employees have career adaptability, they will have the physical, cognitive or psychological resources to better engage in their work role. With psychological availability, employees have the emotional ability to be personally attached and have confidence in their responsibilities so that they will not leave or avoid their work.

The implementation of career adaptability certainly requires support from the company. Therefore, companies through HR management are required to make the right policies and strategies in career management. The company must have a clear, directed, and evenly communicated career path to each employee. This will have an impact on employee productivity and they will master their field of work, and be able to adapt to changes in their working life . The limitation of this study is that the research is still cross-sectional, where data collection as a factor of the independent and dependent variables is carried out at the same time, making it difficult to identify the causal relationship. It is expected that future research will use longitudinal studies, which are conducted over a longer period of time and use the same sample in each phase, so as to analyse the characteristics that develop in a population. The research sample may be less representative in general, because it was conducted at only one bank. Therefore, future research is expected to use a larger sample that uses several banks as research samples. In addition, future research is expected to explore the limitations of this research model, for example by replacing mediating variables or adding moderator variables.

REFERENCES

Ahmad, T., Farrukh, F., & Nazir, S. (2015). Capacity building boost employees performance. Industrial and Commercial Training, 47(2), 61–66. https://doi.org/10.1108/ICT-05-2014-0036

Alshaikhmubarak, A., Da Camara, N., & Baruch, Y. (2020). The impact of high-performance human resource practices on the research performance and career success of academics in Saudi Arabia. Career Development International, 25(6), 671–690. https://doi.org/10.1108/CDI-09-2019-0209

Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2014). Burnout and Work Engagement: The JDR Approach. Annual Review of Organizational Psychology and Organizational Behavior, 1, 389–411. https://doi.org/10.1146/annurev-orgpsych-031413-091235

Cenciotti, R., Borgogni, L., Callea, A., Colombo, L., Cortese, C. G., Ingusci, E., Miraglia, M., & Zito, M. (2016). The Italian version of the job crafting scale (JCS). BPA Applied Psychology Bulletin, 64(277), 28–36.

Coffie, R. B., Gyimah, R., Boateng, K. A., & Sardiya, A. (2023). Employee engagement and performance of MSMEs during COVID-19: the moderating effect of job demands and job resources. African Journal of Economic and Management Studies. https://doi.org/10.1108/AJEMS-04-2022-0138

Demerouti, E., Bakker, A. B., & Gevers, J. M. P. (2015). Job crafting and extra-role behavior : The role of work engagement and flourishing. 91(December), 1–5.

Demerouti, E., Soyer, L. M. A., Vakola, M., & Xanthopoulou, D. (2021). The effects of a job crafting intervention on the success of an organizational change effort in a blue-collar work environment. Journal of Occupational and Organizational Psychology, 94(2), 374–399. https://doi.org/10.1111/joop.12330

Dishop, C. R., & Good, V. (2022). A dynamic system of job performance with goals and leadership changes as shocks. Journal of Business Research, 139 (November 2020), 602–613. https://doi.org/10.1016/j.jbusres.2021.10.018

Douglas, R., Richard, L., & Lynn, M. (2004). The psychological conditions of meaningfulness , safety and availability and the engagement of the human spirit at work. Journal of Occupational and Organizational Psychology, 77, 11-37.

Ferreira, M. C., & Valentini, F. (2015). Evidence of Validity of the Job Crafting Behaviors Scale Evidence of Validity of the Job Crafting Behaviors Scale 1 Evidências de Validade da Escala de Comportamentos de Redesenho do Trabalho Evidencias de Validez de la Escala de Conductas de Rediseño del. February 2016. https://doi.org/10.1590/1982-43272562201506

Guimarães, É., Azevedo, S. De, Queiroga, F., & Valentini, F. (2020). Short Version of Self-Assessment Scale of Job Performance. 36, 543–552.

Gupta, M. (2019). Does work engagement mediate the perceived career support- and career adaptability- work performance relationship? Journal of Global Operations and Strategic Sourcing, 12(2), 310–327. https://doi.org/10.1108/JGOSS-08-2017-0032

Jannesari, M., & Sullivan, S. E. (2019). Career adaptability and the success of self-initiated expatriates in China. Career Development International, 24(4), 331–349. https://doi.org/10.1108/CDI-02-2019-0038

Jr, J. F. Hair., Black, W. C., Babin, B. J., Anderson, R. E., Black, W. C., & Anderson, R. E. (2019). MULTIVARIATE DATA ANALYSIS Multivariate Data Analysis (EIGHT). CENGAGE.

Karatepe, O. M., & Terry, T. (2023). Job crafting and critical work-related performance outcomes among cabin attendants : Sequential mediation impacts of calling orientation and work engagement. Tourism Management Perspectives, 45(December 2022), 101065. https://doi.org/10.1016/j.tmp.2022.101065

Kooij, D. T. A. M., Tims, M., & Akkermans, J. (2017). The influence of future time perspective on work engagement and job performance: the role of job crafting. European Journal of Work and Organizational Psychology, 26(1), 4–15. https://doi.org/10.1080/1359432X.2016.1209489

Latifah, I. N., Suhendra, A. A., & Mufidah, I. (2023). Factors affecting job satisfaction and employee performance: a case study in an Indonesian sharia property companies. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-03-2021-0132

Lee, J. Y., & Lee, Y. (2018). Job Crafting and Performance : Literature Review and Implications for Human Resource Development. https://doi.org/10.1177/1534484318788269

Li, J., & Tong, Y. (2021). Does narcissistic leadership enhance employee resilience? A moderated mediation model of goal-directed energy and psychological availability. Leadership and Organization Development Journal, 42(5), 819–836. https://doi.org/10.1108/LODJ-11-2020-0521

Makikangas, A., & Schaufeli, W. (2021). A person-centered investigation of two dominant job crafting theoretical frameworks and their work-related implications. Journal of Vocational Behavior, 131. https:doi.org/10.1016/j.jvb.2021.103658

Naqshbandi, M. M., Kabir, I., Ishak, N. A., & Islam, M. Z. (2023). The future of work: work engagement and job performance in the hybrid workplace. Learning Organization. https://doi.org/10.1108/TLO-08-2022-0097

Ohme, M., & Zacher, H. (2015). Job performance ratings : The relative importance of mental ability , conscientiousness , and career adaptability. Journal of Vocational Behavior, 87, 161–170. https://doi.org/10.1016/j.jvb.2015.01.003

Qalati, S. A., Ostic, D., Sulaiman, M. A. B. A., Gopang, A. A., & Khan, A. (2022). Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media. SAGE Open, 12(2). https://doi.org/10.1177/21582440221094594

Queiroga, F., Franco, G. C., Valentini, F., & Andrade, Erika, G. S. . (2021). Performance , job crafting and work context : practical implications from a multilevel perspective. https://doi.org/10.1108/IJOA-08-2021-2889

Savickas, M. L., & Maggiori, C. (2017). Career Adapt-Abilities Scale – Short Form ( CAAS-SF ): Construction and Validation. 25(2), 312–325. https://doi.org/10.1177/1069072714565856

Singh, V., & Singh, M. (2018). A burnout model of job crafting: Multiple mediator effects on job performance. IIMB Management Review, 30(4), 305–315. https://doi.org/10.1016/j.iimb.2018.05.001

Tims, M., Bakker, A. B., & Derks, D. (2012). Development and validation of the job crafting scale. Journal of Vocational Behavior, 80(1), 173–186. https://doi.org/10.1016/j.jvb.2011.05.009

Tims, M., & Derks, D. (2014). Job crafting and job performance: A longitudinal study. European Journal of Work and Organizational Psychology, 24(6), 914–928. https://doi.org/10.1080/1359432X.2014.969245

Zito, M., Colombo, L., Borgogni, L., Callea, A., Cenciotti, R., Ingusci, E., & Cortese, C. G. (2019). The nature of job crafting: Positive and negative relations with job satisfaction and work-family conflict. International Journal of Environmental Research and Public Health, 16(7). https://doi.org/10.3390/ijerph16071176